First day of trading with Market God has just come to a close, and I unfortunately had to step out with about 90 minutes left in the day for a meeting…normally not a big deal as the last 90 minutes usually is wildly unpredictable, but today there was a perfect buy opportunity alerted by market god on the 5 minute chart. All in all today there were 2 alerts, one sell signal and one buy signal. Summary is below:
This is the 5 minute chart from today: you’ll notice I have crudely circled 4 spots. Two of these circles are spots where I would have taken a trade if I wasn’t using Market God: I won’t do this often, but today I just want to show the value of secondary confirmation.
The far left spot is where I would have originally decided to buy puts based on my own trading setup. Since Market God had not yet alerted a sell, I did NOT take a position. Probably would have bought $2965 puts and likely would have made 100% or so, but once again, the point of doing this test is to have additional confirmation of taking a position. SO this non-trade is okay!
The next circle on the chart is the first alert from Market God: a sell signal. It was alerted around $2962. I did not take this trade as it was an iffy spot for me based on my own trading indicators. Had I taken it, total profit would have again been around 120% based on $2960 puts and selling at the chop area around $2955.
The 3rd circle is where I would have taken calls based on my own trading. As Market God gave no new indication, I did not take the position. This is a good thing, as it failed to advance through the mid band and fell to new daily lows. Based on $2960 calls, I would have taken a 50-60% loss. Thanks to Market God I did not take the position.
The last circle is the position that both qualified from my trading standpoint, and was alerted as a buy by Market God, Unfortunately, as I mentioned, I was in a meeting. This was a perfectly ideal spot. The trend had made a clear reversal, and buyers wanted to close $SPX at new all time highs. Had we bought at the open of the candle following the alert, $2960 calls would have cost around $1/contract. They closed at just over $4/contract. This is a 300% monster end of day gain. Given the late day timeframe, I will say had I taken a position, it would have been only $500, or the full $1,500 account value but on 7/3 calls instead of today: the total gain then would have been $1,500 (or about $1,000 on the safer 7/3 calls). So, in essence, I should be closing the account today with a profit, but alas, we are still at our starting position.
Summary 7/1/2019 (Total all days):
Total Market God Buy Alerts: 1 (1)
Total Market God Sell Alerts: 1 (1)
Buy alerts confirmed by Nathan’s strategy: 1 (1)
Sell alerts confirmed by Nathan’s strategy: 0 (0)
Buy alert average hypothetical profit: 300% (300%)
Sell alert average hypothetical profit: 120% (120%)
Buy alert real profit: 0% (0%)
Sell alert real profit: 0% (0%)
Trades taken: 0 (0)
Total Profit: 0 (0)
Account Value: $1,500
That’s all for today, but I’ll post some additional content regarding my setup tonight.